Uniper SE is seeking buyers for an oil refinery in the UAE as the German utility seeks to stem a $39.3bn loss from being forced to buy gas to replace lost Russian supplies.

The company has received interest from several parties, including Vitol Group, and a sale could be agreed as early as this year, according to people familiar with the matter who asked not to be identified since the discussions are private.

Uniper produces shipping fuel at the refinery with a capacity of 80,000 barrel a day located in the UAE port of Fujairah.

Uniper is one of the energy firms hit hardest by Moscow’s gas supply cuts, requiring a mammoth rescue package from the German government that will lead to its nationalisation by the end of 2022.

As Germany’s largest importer, its survival is considered essential for the country’s energy system, with failure potentially having a domino effect on the sector. Asset disposals could help the company raise some much-needed cash.

Fujairah hosts several storage facilities housing tanks for crude oil and refined products.

Abu Dhabi National Oil Co. operates a pipeline to the port and loads its flagship Murban crude from Fujairah. Uniper’s refinery is located on the grounds of an oil storage terminal partly owned by Vitol Group and Adnoc.

Uniper declined to comment, Vitol wasn’t immediately available to comment.
Source: Arabian Business